Tennessee Sales Tax on cars and trucks Tennessee: breter-show.ru

Tennessee:

Taxation of car sales in TN How are vehicle sales taxed in Tennessee?

Tennessee Sales Tax on Car Purchases:

Vehicles purchases are some of the largest sales commonly made in Tennessee, which means that they can lead to a hefty sales tax bill. This page covers the most important aspects of Tennessee's sales tax with respects to vehicle purchases. For vehicles that are being rented or leased, see see taxation of leases and rentals.

Tennessee collects a 7% state sales tax rate. There is a maximum tax charge of 36 dollars for county taxes and 44 dollars for state taxes. The maximum tax that can be charged is 575 dollars.

In addition to taxes, car purchases in Tennessee may be subject to other fees like registration, title, and plate fees. You can find these fees further down on the page.

Do Tennessee vehicle taxes apply to trade-ins and rebates?

How are trade-ins taxed?

Many dealerships allow you to trade-in your old car in exchange for a credit applied to the price of a new vehicle. For example, you could trade-in your old car and receive a $5,000 credit against the price of a $10,000 new vehicle, making your out-of-pocket cost only $5,000.

In Tennessee, the taxable price of your new vehicle will be considered to be $5,000, as the value of your trade-in is not subject to sales tax. This means that you save the sales taxes you would otherwise have paid on the $5,000 value of your trade-in.

How are rebates and dealer incentives taxed?

Many dealers offer cash incentives or manufacturer rebates on the sticker price of a vehicle in order to encourage sales. For example, a $1,000 cash rebate may be offered on a $10,000 car, meaning that the out of pocket cost to the buyer is $9,000.

Tennessee taxes vehicle purchases before rebates or incentives are applied to the price, which means that the buyer in this scenario will pay taxes on the vehicle as if it cost the full $10,000.


Other taxes and fees applicable to Tennessee car purchases

In addition to state and local sales taxes, there are a number of additional taxes and fees Tennessee car buyers may encounter. These fees are separate from the sales tax, and will likely be collected by the Tennessee Department of Motor Vehicles and not the Tennessee Department of Revenue.


Title Fee: $5.50
Registration Fee: $21.50
Plate Transfer Fee: $1

Average DMV fees in Tennessee on a new-car purchase add up to $241, which includes the title, registration, and plate fees shown above.

Tennessee Documentation Fees

Dealerships may also charge a documentation fee or "doc fee", which covers the costs incurred by the dealership preparing and filing the sales contract, sales tax documents, etc. These fees are separate from the taxes and DMV fees listed above.

The average doc fee in Tennessee is $4951, and Tennessee law does not limit the amount of doc fees a dealer can charge. Because these fees are set by the dealerships and not the government, they can vary dealership to dealership or even vehicle to vehicle.

1 - Average DMV and Documentation Fees for Tennessee calculated by Edmunds.com



Back to Tennessee breter-show.ru Top
** This Document Provided By SalesTaxHandbook **
Source: http://breter-show.ru/tennessee/sales-tax-vehicles

Related pages


vat rate in austriazip code for mogadore ohiosouth carolina income tax ratesdelaware state sales tax rateillinois sales tax lawsmontgomery county sales taxboe sales tax ratelouisiana tax title and license calculatoralpharetta sales taxbes islandssales tax lorain county ohiostate of louisiana dept of revenuezip code for north judson indianakingston new york zip codetimnath zip codewatauga county taxillinois sales tax rates by zip codelillington north carolina zip codeohio tobacco taxzip code for lathrop canebraska map with cities and countiescedar city utah zip code mapharris county esd 5auxvasse mo zip codespokane county sales taxtulsa oklahoma tax rateniland zip codezip code bridgeport ohiomoro illinoissales tax rates in kansasrockwall county taxzip codes lake charles layoder colorado zip codesouth dakota dept of motor vehiclespa tax exempt certificatebuckeye zip code mapsouth haven mn zip codebickleton washingtonsinclairville ny zip codewhat is taxed in njmayville ny zip codedenton taxesnh beer pricesdmv tax calculatorzip code east syracuse nysales tax in des moines iowadmv benton arflorida tobacco priceszip code dillon cott&l calculatorfile kansas state taxes onlinesales tax in westchester nyauto sales tax in illinoiscolorado tobacco taxpeever south dakotastockton ca sales taxtax on clothes in pavehicle sales tax arkansaskaty tx sales tax ratearizona tax percentagewashington tax exempt formlowes forsyth illinoispatrick afb zip codetexas resale certificate verificationwhat is shreveport zip codewaco ne zip codeelk grove village zip codeglascock county texasvirginia automobile sales taxmeriden kansas zip codestanislaus county tax ratetexas resale permitbennett iowa zip code